The movie version of The Hobbit wiil be made in New Zealand. It took an agreement with the unions and a change in law to keep it there. And it's a good thing; they'll be able to maintain visual continuity with the LOTR movies. And won't have to re-recreate Hobbiton. They'll just have to throw the sheep out of Bag End - probably easier than evicting the Sackville-Bagginses...
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